"Public Enterprises Lead Resource Development Exploration Projects and Government Provides Special Financing Support"

Ministry of Trade, Industry and Energy Finalizes and Announces 'Basic Resource Development Plan' for 2020-2029... Integrating Overseas and Domestic Plans

Oil drilling site view. (Photo by Korea National Oil Corporation)

[Asia Economy Reporter Moon Chaeseok] The government has finalized and announced the 'Basic Plan for Resource Development,' which involves public enterprises leading large-scale exploration projects and the government providing special loan support.

On the 12th, the Ministry of Trade, Industry and Energy announced the basic plan through the Energy Committee's review, covering up to 2029. The basic plan is a 10-year plan established every five years.

The strategic directions of this basic plan are ▲ restructuring of public enterprises ▲ establishing differentiated strategies in the global energy resource market ▲ presenting new resource security indicators rather than quantitative goals focused on resource development rates.

The plan consists of three major areas and nine implementation strategies.

First, it aims to revitalize the resource development industry ecosystem.

The government will steadily implement the high-intensity restructuring plan for resource development public enterprises, following the 'Overseas Resource Development Innovation Task Force (TF) Recommendations' announced in July 2018.

To check the implementation status of the existing Innovation TF recommendations, prepare supplementary measures, and promote the restructuring of public enterprises, a 'Second Innovation TF' will be formed and operated.

Through special loan support and other measures, investment by private companies will be activated. Support for exploration projects, which have high risks and are difficult for private participation, will be expanded.

For example, continuous investment such as government equity support will be made for exploration projects aimed at developing the domestic continental shelf.

A 'Preliminary Feasibility Study Guideline' reflecting the unique characteristics of exploration projects with high uncertainty will be prepared.

For public-private co-growth, public enterprises will discover and promote public-private cooperation models centered on exploration projects. Support will also be provided to strengthen the capabilities of private companies.

Six strategic regions will be set according to changes in the energy environment, and differentiated strategies will be established for each region.

Based on resource reserves, safety, proximity, future-oriented technology, and potential for experience accumulation, oil and gas projects will focus on North America, the Middle East, New Southern Policy regions, and New Northern Policy regions. Mineral investments will concentrate on Latin America, Southeast Asia, and Oceania.

A comprehensive roadmap will be established to secure key raw minerals such as lithium and cobalt used in new industries like electric vehicles and robotics.

Resource development on the Korean Peninsula will be promoted through expanded investment in domestic continental shelf exploration and promising East Sea structures (such as blocks 6-1 and 8), as well as establishing a foundation for inter-Korean resource development cooperation.

The focus will shift from obsession with 'resource development' to a 'resource security' policy.

Instead of quantity-centered goals (resource development rates), a 'Korean-style Resource Security Diagnostic System' will be established to comprehensively assess the national resource security situation.

Previously, only resource development rates were considered, but now various factors for resource security capabilities and risk management will be reflected.

Additionally, in preparation for the continuous increase in domestic resource demand through the 2030s, a linked strategy for development-import-stockpiling, which has been operated in a segmented manner, will be established.

Resource security infrastructure will also be expanded, including strategic technology development to solve field issues, fostering resource development service industries, and customized workforce training.

Seong Yun-mo, Minister of Trade, Industry and Energy, stated, "Considering changes in the global resource market and domestic realities, our resource development strategy must also change. Based on the basic plan for resource development, we will actively respond to internal and external environmental changes and do our best to strengthen Korea's resource security capabilities."

The Ministry of Trade, Industry and Energy plans to concretize the resource development basic plan confirmed and announced through the Energy Committee with related ministries and steadily implement a resource security strategy that comprehensively considers resource development, import, and stockpiling.

It also plans to stabilize oil and gas supply and demand and securely procure raw minerals for key new industries such as electric vehicles and robotics to support the development of Korea's industry.

This content was produced with the assistance of AI translation services.